#BTCReserveStrategy
Key Elements of a BTC Reserve Strategy:
1. Asset Allocation
Decide what percentage of your portfolio or treasury to hold in BTC.
Common among institutions: 1–10% allocation.
2. Accumulation Plan
Use Dollar-Cost Averaging (DCA) to reduce volatility risk.
OTC trading for large purchases to avoid slippage.
3. Custody Solutions
Store BTC securely using:
Cold wallets (e.g., Ledger, Trezor)
Multi-signature wallets
Institutional custodians (e.g., Coinbase Custody, BitGo)
4. Hedging Risk
Hedge with derivatives (futures/options) if exposed to price fluctuations.
Use stablecoins or gold-backed assets to balance volatility.
5. Regulatory Compliance
Maintain clear reporting for tax and legal purposes.
Monitor updates in jurisdictional laws (e.g., SEC, FATF, FBR in Pakistan).
6. Exit Strategy
Set clear rules for when to sell or rebalance (e.g., price targets, market cap dominance).
Use BTC profits to diversify into other assets or business growth.